MIRA
INFORM REPORT
|
Report Date : |
07.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
ESSAR PORTS LIMITED (w.e.f. 13.05.2011) |
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Formerly Known
As : |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
05.04.1975 |
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Com. Reg. No.: |
04-054824 |
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Capital
Investment / Paid-up Capital : |
Rs.4105.861 Millions |
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CIN No.: [Company Identification
No.] |
L85110GJ1975PLC054824 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUME03402A |
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PAN No.: [Permanent Account No.] |
AAACEB391D |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Subject company is integrated logistics solution provider. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 110000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Essar Group, Worldwide. It is an established company having satisfactory track. Since it’s the
first full year of operation post demerger of Shipping and Logistics and Oilfield
services businesses, we can find huge difference in the financials. There
appears huge losses from operation because in the last two years growth in
the ports sector has been below its potential due to imposition of higher
export duty on iron ore and higher railway charges for transportation of iron
ore. Growth of the post sector has also been affected by rise in prices of
imported coals; However, trade relations are fair. Business is active.
Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE.
Tel No.:91-22-66601100
LOCATIONS
|
Registered Office : |
Administration Building, Essar Refinery Complex, Okha Highway (SH-25),
Khambalia Taluka, Jamnagar, Gujarat, India |
|
Tel. No.: |
91-79-66601100/ 2833241444 |
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Fax No.: |
91-79-24954312/ 2833241414 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate Office 1 : |
Essar House, 11,
Keshavrao Khadye Marg, Mahalaxmi, Mumbai - 400034, Maharashtra, India |
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Tel No.: |
91-22-66601100/ 40011100 |
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91-22-23544312 |
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Branch Office 2 : |
Located at: ·
Mumbai ·
Ahmedabad ·
Chennai ·
Hazira ·
New Delhi ·
Vadinar ·
Visakhapatnam |
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Overseas Offices : |
Located at: ·
Africa ·
Czech Republic ·
China ·
Kenya ·
Indonesia ·
Madagascar ·
Korea ·
Mauritius ·
United Kingdom ·
Qatar ·
UAE ·
USA ·
Vietnam |
DIRECTORS
(AS ON 31.03.2012)
|
Name : |
Mr. Rajiv Agarwal |
|
Designation : |
Managing Director |
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Name : |
Mr. Anshuman Rula |
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Designation : |
Director |
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Name : |
R N Bansal |
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Designation : |
Independent Director |
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Name : |
Mr. K V Krishnamurthy |
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Designation : |
Independent Director |
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Name : |
Mr. Dilip Thakkar |
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Designation : |
Independent Director |
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Name : |
Mr. Deepak Kumar Verma |
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Designation : |
Independent Director |
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Name : |
Mr. T S Narayanasami |
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Designation : |
Independent Director |
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Name : |
Mr. Jan Adam |
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Designation : |
Director |
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Name : |
Mr. Shailesh Sawa |
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Designation : |
Director Finance |
KEY EXECUTIVES
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Name : |
Mr. K K Shinha |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Rajiv Agarwal |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Manoj Contractor |
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Designation : |
Company Secretary |
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Audit Committee : |
Mr. Anshuman Ruia Mr. R. N. Bansal Mr. K. V. Krishnamurthy Mr. Deepak Kumar Varma |
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Shareholders’
Grievance Committee : |
Mr. R. N. Bansal Mr. Deepak Kumar Varma Mr. Rajiv Agarwal Mr. Shailesh Sawa |
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Share Transfer
Committee : |
Mr. Rajiv Agarwal Mr. K. K. Sinha Mr. Shailesh Sawa |
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Compensation
Committee : |
Mr. R. N. Bansal Mr. Dilip J. Thakkar Mr. Deepak Kumar Varma |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2012)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
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(A) Shareholding
of Promoter and Promoter Group |
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|
|
|
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|
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|
59083382 |
14.39 |
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|
59083382 |
14.39 |
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|
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|
284503777 |
69.31 |
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|
284503777 |
69.31 |
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Total
shareholding of Promoter and Promoter Group (A) |
343587159 |
83.71 |
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(B) Public
Shareholding |
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|
|
|
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|
35611 |
0.01 |
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|
44351 |
0.01 |
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|
438082 |
0.11 |
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|
33982073 |
8.28 |
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|
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|
15115 |
0.00 |
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|
15115 |
0.00 |
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|
34515232 |
8.41 |
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|
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|
9410083 |
2.29 |
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|
15329585 |
3.73 |
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|
7018918 |
1.71 |
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|
594575 |
0.14 |
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|
594575 |
0.14 |
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|
32353161 |
7.88 |
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Total Public
shareholding (B) |
66868393 |
16.29 |
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Total (A)+(B) |
410455552 |
100.00 |
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(C) Shares held
by Custodians and against which Depository Receipts have been issued |
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|
0 |
0.00 |
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|
17432446 |
0.00 |
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|
17432446 |
0.00 |
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Total
(A)+(B)+(C) |
427887998 |
100.00 |
(1) Indian
Bodies Corporate
Foreign BankShareholding of securities (including
shares, warrants, convertible securities) of persons belonging to the category
Promoter and Promoter Group
|
No. |
Name of the Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
||
|
1 |
Essar Investments
Limited |
1,34,338 |
0.03 |
|
2 |
Essar Steel
India Ltd |
25,47,223 |
0.60 |
|
3 |
Imperial
Consultants and Securities Private Limited |
4,826 |
0.00 |
|
4 |
Essar Project
(India) Limited |
5,63,96,995 |
13.18 |
|
5 |
Essar Global
Limited |
66 |
0.00 |
|
6 |
Essar Shipping
and Logistics Limited |
28,45,03,711 |
66.49 |
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Total |
34,35,87,159 |
80.30 |
(*) The term encumbrance has the same meaning as assigned to it in
regulation 28(3) of the SAST Regulations, 2011.
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Public and holding more than
1% of the total number of shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
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1 |
India Max
Investment Fund Limited |
18261322 |
4.27 |
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2 |
Royal Bank of
Soctland N V London |
7600000 |
1.78 |
|
3 |
CLSA Mauritius
Limited |
5254238 |
1.23 |
|
4 |
The Bank of New
York Mellon |
17432446 |
4.07 |
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|
|
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Total |
48548006 |
11.35 |
Details of Locked-in
Shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares |
Locked-in Shares as % of |
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1 |
Essar Shipping and
Logistics Limited |
6,08,17,581 |
14.21 |
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Total |
6,08,17,581 |
14.21 |
Details of Depository
Receipts (DRs)
|
Sl. No. |
Type of Outstanding DR (ADRs, GDRs, SDRs, etc.) |
No. of Outstanding DRs |
No. of Shares Underlying |
Shares Underlying Outstanding DRs as % of Total
No. of Shares |
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1 |
GDR |
52,666 |
1,74,32,446 |
4.07 |
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Total |
52,666 |
1,74,32,446 |
4.07 |
BUSINESS DETAILS
|
Line of Business : |
Subject company is integrated logistics solution provider. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
Corporation Bank, Andheri Branch |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountant |
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Address : |
Heritage, 3rd Floor, Near Gujrat Vidhyapith Off Ashram
Road, Ahmedabad – 380014, Gujarat, India |
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Ultimate Holding
Company: |
·
Essar Global Limited, Cayman Island |
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Immediate
Holding Company: |
·
Essar Shipping and Logistics Limited, Cyprus |
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Subsidiaries : |
· Essar Bulk Terminal Limited · Vadinar Oil Terminal Limited · Vadinar Ports and Terminals Limited · Essar Bulk Terminal (Salaya) Limited · Essar Bulk Terminal Paradip Limited (w.e.f March 31, 2011) · Essar Paradip Terminals Limited · Essar Shipping Limited (formerly known as Essar Ports and Terminals Limited) (upto October 1, 2010) · Essar Logistics Limited (upto September 30, 2010) · Essar Oilfield Services India Limited (upto September 30, 2010) · Essar Oilfields Services Limited, Mauritius (upto September 30, 2010) |
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|
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Fellow
subsidiaries/ other related parties/ affiliate where there have been
transactions: |
· Aegis Limited · Arkay Holdings Limited · Imperial Consultants and Securities Private Limited · Essar Africa Holdings Limited (formerly known as India Securities Holdings Limited) · Essar Agrotech Limited · Essar Bulk Terminal Paradip Limited (till March 31, 2011) · Essar Energy Holdings Limited · Essar House Limited · Essar Infrastructure Services Limited · Essar Information Technology Limited · Essar Investments Limited · Essar Logistics Limited (from October 1, 2010) · Essar Oil Limited · Essar Oilfields Services Limited (w.e.f. October 1, 2010) · Essar Oilfield Services India Limited (w.e.f. October 1, 2010) · Essar Shipping Limited (w.e.f. October 1, 2010) · Essar Steel India Limited (formerly known as Essar Steel Limited) · Essar Steel Hazira Limited · Futura Travels Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs.10000.000 Millions |
|
1050000 |
Redeemable cumulative preference shares |
Rs.100/- each |
Rs.105.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.10105.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
410455552 |
Equity Shares |
Rs.10/- each |
Rs.4104.556 Millions
|
|
246648 |
Redeemable cumulative preference shares |
Rs.100/- each |
Rs.1.305
Millions |
|
|
|
|
|
|
|
Total |
|
Rs.4105.861 Millions |
NOTE:
Of above 17,18,87,182 (previous year 17,18,87,182) equity shares were allotted
as fully paid up equity shares for consideration other than cash pursuant to
scheme of amalgamation during financial year 2008-09.
Reconciliation of
the shares outstanding at the beginning and at the end of the reporting period
|
Particulars |
As at March 31,
2012 |
|
|
|
Number |
(Rs. In millions) |
|
Equity shares of Rs. 10/- each |
410455552 |
4104.556 |
|
At the beginning of the year |
-- |
-- |
|
Add: Pending allotment of shares |
-- |
-- |
|
Add: Issue of shares |
-- |
-- |
|
Less: Extinguishment under the scheme of arrangement |
-- |
-- |
|
Outstanding at the end of the year |
410455552 |
4104.556 |
TERMS / RIGHTS
ATTACHED TO EQUITY SHARES
The Company has one
class of equity shares having a par value of Rs. 10/- per share. Each
shareholder is eligible for one vote per share held. The dividend proposed by
the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their shareholding.
Shares held by holding / ultimate holding company
and/or their subsidiaries / associates and details of the shareholding more
than 5% shares in the company
|
Particulars |
As at March 31,
2012 |
|
|
|
Number |
% |
|
Equity shares of Rs. 10/- each |
|
|
|
Essar Shipping and Logistics Limited, Cyprus the holding company |
284503711 |
69.31 |
|
Essar Global Limited, the ultimate holding company |
66 |
0.00 |
|
Essar Projects (India) Limited, subsidiary of the ultimate holding company |
56396995 |
13.74 |
|
Essar Steel India Limited, subsidiary of the ultimate holding company |
2547223 |
0.62 |
|
Essar Investments Limited, related party |
134338 |
0.03 |
|
Imperial Consultants and Securities Private Limited, related party |
4826 |
0.00 |
(i) 7,40,334 shares
(as at March 31, 2011 NIL shares) of Rs.71.10 each towards outstanding employee
stock options granted/ available for grant
(ii) 2,04,75,463
shares (as at March 31, 2011, 2,04,75,463 shares) of Rs.91.70 each towards 5%
Foreign Currency Convertible Bonds
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4105.861 |
4105.861 |
6158.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
22335.261 |
23251.573 |
66177.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
26441.122 |
27357.434 |
72335.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2000.000 |
0.000 |
12301.800 |
|
|
2] Finance lease obligations |
0.000 |
0.000 |
9261.300 |
|
|
3] Unsecured Loans |
2396.260 |
7011.800 |
9336.700 |
|
|
TOTAL BORROWING |
4396.260 |
7011.800 |
30899.800 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
30837.382 |
34369.234 |
103235.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
889.070 |
463.970 |
16764.600 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
3205.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
36594.200 |
33129.660 |
72417.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
176.300 |
|
|
Sundry Debtors |
73.097
|
0.000
|
1407.400 |
|
|
Cash & Bank Balances |
21.286
|
386.708
|
322.600 |
|
|
Other Current Assets |
319.012
|
9.900
|
32.700 |
|
|
Loans & Advances |
336.099
|
1303.986
|
9817.800 |
|
Total
Current Assets |
749.494
|
1700.594
|
11756.800 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
155.658
|
0.000
|
666.900 |
|
|
Other Current Liabilities |
7008.564
|
897.315
|
191.600 |
|
|
Provisions |
231.160
|
27.675
|
50.500 |
|
Total
Current Liabilities |
7395.382
|
924.990
|
909.000 |
|
|
Net Current Assets |
(6645.888)
|
775.604
|
10847.800 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
30837.382 |
34369.234 |
103235.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from
Operations |
362.200 |
4868.669 |
10282.100 |
|
|
|
Other income |
163.436 |
1724.935 |
1045.900 |
|
|
|
TOTAL (A) |
525.636 |
6593.604 |
11328.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee
Benefits Expenses |
92.746 |
478.035 |
6268.400 |
|
|
|
Operating
expenses |
72.648 |
3127.589 |
694.900 |
|
|
|
Establishment
and other expenses |
69.839 |
179.739 |
92.300 |
|
|
|
TOTAL (B) |
235.233 |
3785.363 |
7055.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
290.403 |
2808.241 |
4272.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
923.993 |
1840.752 |
2186.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(633.590) |
967.489 |
2085.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
74.033 |
598.741 |
1195.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
(707.623) |
368.748 |
890.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2.345 |
160.000 |
(9.600) |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
(709.968) |
208.748 |
900.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
11099.100 |
10699.100 |
|
|
|
|
|
|
|
|
|
|
BALANCE ACQUIRED
ON AMALGAMATION |
NA |
4929.600 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to tonnage tax reserve |
NA |
0.000 |
250.000 |
|
|
|
Transferred to debenture redemption reserve |
NA |
0.000 |
250.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
16237.448 |
11099.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(1.73) |
0.51 |
1.46 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
84.200 |
76.100 |
|
Total Expenditure |
|
72.100 |
67.300 |
|
PBIDT (Excl OI) |
|
12.100 |
8.800 |
|
Other Income |
|
35.000 |
236.300 |
|
Operating Profit |
|
47.100 |
245.100 |
|
Interest |
|
207.200 |
171.100 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(160.100) |
74.000 |
|
Depreciation |
|
19.000 |
19.200 |
|
Profit Before Tax |
|
(179.100) |
54.800 |
|
Tax |
|
0.000 |
0.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(179.100) |
54.800 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(179.100) |
54.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(135.07)
|
0.03 |
7.94 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(195.37)
|
7.57 |
8.66 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(43.19)
|
17.04 |
3.12 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.01 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.45
|
0.29 |
0.44 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.10
|
1.84 |
12.93 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
|
|
|
|
Trade Payables |
155.658 |
0.000 |
|
|
|
|
|
Total |
155.658 |
0.000 |
|
Particulars |
31.03.2010 (Rs. In Millions) |
|
|
|
|
Sundry Creditors |
|
|
Due to micro and small enterprises |
0.000 |
|
Others |
666.900 |
|
|
|
|
Total |
666.900 |
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes
/ No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
No |
MANAGEMENT DISCUSSION
AND ANALYSIS
INDIAN ECONOMY AND
INFRASTRUCTURE SECTOR
The Indian Economy
grew by a moderate 6.5% in FY12 compared to 8.4% in the last two years. In
spite of this slowdown, India remains one of the fastest growing economies in
the world. Manufacturing has showed signs of deceleration in FY12, with growth
of Index of Industrial Production (IIP) slowing to 2.8% in FY12, as against a
high of 8.2% in the previous year. On the other hand, fundamentals of the
economy remain strong, backed by promising growth in external trade. Exports
registered a growth of 21% in FY12 to USD 303.7 billion while imports
registered a growth of 32.2% to USD 488.6 billion. India had the fastest growth
in exports among major economies in 2011, with shipments rising 16.1% compared
to global average growth of 5% and a
9.3% growth in China.
However, in the
last 2 years, growth in the ports sector has been below its potential due to
imposition of higher export duty on iron ore and higher railway charges for transportation
of iron ore. Growth of the port sector has also been affected by rise in prices
of imported coal. However, these issues are expected to be temporary in nature
and the port sector growth story is expected to remain intact in the long run.
Growth of the port sector is linked to the growth of Indian economy and
external trade. The Indian economy is expected to achieve growth rates of 8-9%
in the next few years. Similarly, the growth in trade is expected to be robust
resulting in growth of traffic. As per Maritime Agenda 2010-20 published by the
Ministry of Shipping, port traffic is expected to reach to 2,495 MMT by 2020
from 850 MMT in 2010. As the economy grows, port traffic will increase and more
investment opportunities will be created in this sector. Considering high
capacity utilisation of existing port assets and expected higher traffic growth
in future, new capacity addition in ports will have good utilisation and the
port sector will remain an attractive investment destination.
Challenges faced
by the port sector
Several port
projects have been affected due to procedural delays linked to approvals and
clearances required for the Indian Economy witnessed high inflation during the
year and to control that Reserve Bank of India (RBI) introduced monetary
controls. Recently, RBI relaxed its monetary control as is evident from the 50
basis point reduction in Repo rate in April 2012. Several banks have reduced
their lending and deposit rates following the monetary policy announcement,
this will fuel the investment in and growth of the economy.
The focus of the
Government is on growth of the infrastructure sector to ensure that earlier
growth targets set in the ports, roads, steel and power sectors are achieved
and the economy gets back to 8% plus growth rate trajectory.
PORTS SECTOR
Indian ports have
handled a total of 929 million metric tonnes (MMT) of cargo during FY12
registering a moderate growth of 5% compared to 884 MMT of cargo handled during
FY11. The ports sector in India has grown at a CAGR of 10% in the last 10 years
projects. Connectivity of ports is another major challenge as it is critical
for the ports to operate at their optimum capacity. Government initiatives for
development of port connectivity as linkages to the hinterland would provide
necessary boost to the sector.
ESSAR PORTS – PERFORMANCE
The Company is one
of the largest private sector port and terminal companies in India and the year
has been a good year for the Company.
STRATEGIC PARTNERSHIP WITH PORT OF ANTWERP
The Company has
entered into a Strategic partnership with the Port of Antwerp International
which is an investment arm of the Port of Antwerp (POA). POA is the second
largest port in Europe.
The partnership
envisages collaboration in the areas of training and consultancy services, port
planning, traffic flow, quality and productivity improvement and will further
build a mutually beneficial commercial relationship based on mutual business
and investment preferences.
Port of Antwerp
International UK Limited has also invested approximately Rs.1750.000 Millions
in the Global Depository Securities of the Company. The Company has issued
52,666 Global Depository Securities representing 1,74,32,446 underlying equity
shares of Rs. 10/- each at a premium of Rs. 90/- per share.
HIGHLIGHTS:
• A 12 million
metric tonnes per annum (MMTPA) handling capacity terminal has been
commissioned on April 1, 2011 by Vadinar Ports and Terminals Limited.
• Cargo handled by
the Company has increased by 9% from 39.55 MMT in FY11 to 43.23 MMT in FY12.
• Revenue
increased by 51% from Rs.7460.000 Millions in FY11 (for the port segment prior
to demerger) to Rs. 1,1310.000 Millions in FY12.
• EBITDA increased
by 65% from Rs. 5500.000 Millions in FY11 (for the port segment prior to
demerger) to Rs. 9130.000 Millions in FY12.
• Net profit
doubled from Rs. 285.000 Millions in FY11 (for the port segment prior to
demerger) to Rs. 639.000 Millions in FY12.
• 3rd party cargo
contributed about 4% of total revenue of Essar Bulk Terminal Limited.
• Continued focus
on Quality, Health, Safety and Environment resulted in ISO 9001 certification
for quality; ISO 14001certification for Environment and OHSAS 18001
certificates for occupational health and safety for the Company’s Vadinar and
Hazira facilities.
PERFORMANCE UPDATE
This was the first
full year of operations for the Company post the demerger of shipping and
logistics and oilfields services businesses. Despite global slowdown and several
other challenges being faced by the Indian economy, the Company has performed
exceptionally well in all areas of operations inter alia:
• 9% increase in
cargo is due to higher capacity utilization at Hazira and expansion of the port
facilities at Vadinar for handling increased cargo.
• The Company
registered not only substantial increase in billed volume but also substantial
increase in realization per tonne. The realisation on billed volume increased
by 26% during the year from Rs. 185/MMT in FY11 to Rs. 233/MMT in FY12. The
increase in billed volume and realisation has led to 51% growth in revenue from
Rs. 7460.000 Millions in FY11 (for the port segment prior to demerger) to Rs.
11310.000 Millions in FY12.
• Vadinar Ports
and Terminals Limited commissioned its facilities on April 1, 2011, which has
increased revenues
substantially due
to higher facility usage charges and higher throughput. At Hazira, billed
volume increased substantially as per the cargo handling contract with
customers. 3rd party cargo handling at Hazira contributed 4% to the total
revenue at Hazira.
• The Company has
recorded EBITDA margin of 80%, one of the highest in the industry, an increase
from 73% in FY11. The EBITDA of the Company increased by 65% from Rs. 5500.000 Millions
in FY11 (for the port segment prior to demerger) to Rs. 9130.000 Millions in
FY12.
• The Company
recognised a onetime contingent liability of Rs. 2355.000 Millions as long term
debt as per the agreement with the lenders of Vadinar Oil Terminal Limited,
which will be paid between 2019 and 2023 and carries an interest of 5% p.a.
PROGRESS OF THE PROJECT UNDER IMPLEMENTATION
• A 16 MMTPA
capacity berth at Paradip for handling iron ore is close to commissioning and
is expected to be completed during second quarter of FY13.
• Progress of the
construction of a 20 MMTPA coal berth at Salaya is as per plan. All important
equipment like ship unloader, ship loader and stacker cum reclaimer have been
delivered at the site.
• Construction of
a 14 MMTPA coal terminal at Paradip is expected to commence during second half
of FY13. Environment clearance and stage I forest clearance have been received
and final forest clearance is expected shortly.
SUBSIDIARIES
As on March 31,
2012, the following were the subsidiaries of the Company:
1. Vadinar Oil
Terminal Limited (VOTL)
2. Vadinar Ports
and Terminals Limited (a subsidiary of VOTL)
3. Essar Bulk
Terminal Limited
4. Essar Bulk
Terminal (Salaya) Limited
5. Essar Paradip
Terminals Limited
6. Essar Bulk
Terminal Paradip Limited
In accordance with
the general circular issued by the Ministry of Corporate Affairs, Government of
India, the Balance Sheet, Profit and Loss Account and other documents of the
subsidiary companies are not being attached with the Balance Sheet of the
Company. The Company will make available the Annual Accounts of the subsidiary
companies and the related information to any member of the Company who may be
interested in obtaining the same. The annual accounts of the subsidiary
companies will also be kept for inspection at the Registered Office of the
Company and that of the respective subsidiary companies.
COMPANY PROFILE
Company is
develops and operates ports and terminals and is one of the largest private
sector port companies in India. Company is India’s second-largest,
private-sector port and terminal company by capacity and throughput.
Company is part of
the multinational Essar Group, and holds the Group’s entire ports business. It
is listed on the BSE Limited and the National Stock Exchange of India Limited
(NSE). The Company, which was previously named Essar Shipping Ports and
Logistics Limited (ESPLL), recently went through a demerger process, following
which the shipping, logistics and oilfield drilling businesses were demerged
from ESPLL and transferred to another company, Essar Shipping Limited, which is
also listed on Indian stock exchanges.
Company through
its subsidiaries develops and operates ports and terminals for handling liquid,
dry bulk, break bulk and general cargo, with an existing aggregate capacity of
88 MTPA across two facilities located at Vadinar and Hazira in the State of
Gujarat on the west coast of India.
The facilities at
Vadinar and Hazira are used primarily by affiliated customers for the receipt of
raw materials such as crude oil, iron ore / pellets, limestone, dolomite and
coal, and for the dispatch of finished goods such as petroleum products and
steel products.
Company is in the
process of increasing its aggregate ports capacity to 158 MTPA with expansion
projects at Vadinar and Hazira, a new port at Salaya in Gujarat, and two
terminals at Paradip in the State of Odisha on the east coast of India. The
ports expansion projects have been undertaken, in part, to accommodate the
increase in traffic expected to arise from plant expansions planned to be
carried out by the Company’s affiliated customers, and in part to support the
increase in business from non-affiliated customers being targeted by the
Company.
CONTINGENT
LIABILITIES
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In
Millions) |
|
|
|
|
|
|
Guarantees given by banks on behalf of subsidiary |
160.000 |
0.000 |
|
Corporate guarantees on behalf of subsidiaries Commitments to invest
in subsidary companies |
20116.000 |
24653.000 |
|
|
|
|
|
Total |
20276.000 |
24653.000 |
NEWS
NOVEMBER 26, 2012
RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2012:
· Group revenue up 97% to US$12.8bn (six months to 30 June 2011[1]: US$6.5bn), primarily due to higher refining revenues in India from higher capacity and revenue due to the acquisition of Stanlow, UK
· Group Current Price (CP) EBITDA[2] of US$582.6 million in H1 FY13 (six months to 30 June 2011: US$198.6m), up 193% on H1 FY12[1], driven by increased refinery margins and throughput at Vadinar refinery and the contribution from Stanlow refinery offset by lower operational EBITDA[2] from power
· Loss before tax and loss after tax of US$282.8 million and US$200.8 million, respectively (six months to 30 June 2011: Profit of US$278.5 million and US$206.2 million, respectively), with increased operational EBITDA[2] being offset by higher interest costs and depreciation due to the commissioning of the Vadinar refinery phase 1 and optimisation projects and Salaya I, increased foreign exchange losses and sales tax benefit not available in the current period
OIL AND GAS: Strong margin uplift at Vadinar and Stanlow
· Vadinar: All refinery expansion units ramped up and stabilised: 20mmtpa capacity, 11.8 complexity
· Vadinar: Current Price Gross Refinery Margins (CPGRM) averagedUS$6.41/bbl in H1 FY13 against US$4.75/bbl (excluding sales tax benefit) in H1 FY12, rising to nearlyUS$11/bblin September 2012
· Stanlow: CPGRM averaged US$8.03/bbl in H1 FY13 against US$3.1/bbl in first eight months of ownership. CPEBITDA[2] at US$197.2 million in H1 FY13 against US$22.2 million in first eight months of ownership. Initiatives continue to deliver over US$3/bbl margin uplift within the next two years
POWER: Power generation capacity more than doubled since April 2012
· Coal-fired projects commissioned: Salaya I, 1,200MW and Vadinar P2 unit 1, 255MW during H1FY13; Vadinar P2 unit 2, 255MW, commissioned post period-end.3,310MW is now operational
· Mahan coal block given stage 1 forest clearance, giving long term fuel security for Mahan I, 1,200MW
SALES TAX & FUNDING: Gujarat deferred sales tax agreement secured
· Gujarat sales tax:two year repayment schedule agreed; no interest payable pre-17 January 2012
· Essar Oil Rs50 billion (c.US$949 million) sales tax standby facility secured
· Exploring options to reduce interest costs for the group and extenddebt repayment profile
ESSAR PORTS SOAR 20% ON POSITIVE RATING
Mumbai, October, 31:
Shares of Essar Ports on Monday soared higher by 20
per cent to touch their highest permissible limit of the day at Rs 80.30, amid
reports of a ‘buy’ rating by a global financial services firm.
According to media reports, Essar Ports was given a
“buy” recommendation by Bank of America Merrill Lynch in its initial coverage
of the stock.
Reacting to the news, the shares of Essar Ports
opened on a bullish note and surged 19.94 per cent to touch a high of Rs 80.30
on the BSE. The circuit filter applicable on the stock limits its rise or fall
to 20 per cent during a day.
At the National Stock Exchange also, the stock
rallied by 20 per cent to touch a high of Rs 80.40. In the process, the
company’s market capitalisation rose by Rs 5480.000 Millions to Rs 32950.000
Millions at the end of today’s trade.
The stock considerably outperformed the broader
market trends, as the benchmark Sensex fell nearly 100 points to settle at
17,705.01, points
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.74 |
|
|
1 |
Rs.87.63 |
|
Euro |
1 |
Rs.71.11 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.